Finance Charges

Adam’s credit card calculates finance charges using the adjusted balance method and a 30-day billing cycle. The table below shows his use of that credit card over three months.If Adam’s credit card has an APR of 14.63%, what is Adam’s balance at the end of June? c. $627.27
Dennis has a credit card with an APR of 10.14% and a billing cycle of 30 days. The following table shows his transactions with that credit card in the month of November.If the finance charge for November is $3.82, which method of calculating the finance charge does Dennis’s credit card company use? a. adjusted balance method
To minimize finance charges calculated by the daily balance method, when in the billing cycle is it best to make purchases and payments? c. Payments should be made early in the billing cycle, and purchases should be made late in the billing cycle.
Jessica’s credit card is on a 30-day billing cycle, and it computes finance charges using the adjusted balance method. The following table details Jessica’s use of her credit card in the month of October.What is Jessica’s adjusted balance for October? b. $1,033.76
Patrick has a credit card with an APR of 15.40% and a billing cycle of 30 days. The following table shows Patrick’s credit card transactions in the month of August.How much greater will Patrick’s August finance charge be if his credit card company computes finance charges using the previous balance method than if it computes finance charges using the adjusted balance method? b. $3.41
Yolanda’s credit card has an APR of 16.22% and a billing cycle of 30 days. The table below shows her transactions with that credit card in the month of November.Find Yolanda’s finance charge in November using the previous balance method, the adjusted balance method, and the daily balance method. Among those three possible finance charges, what is the value of the one which is neither lowest nor highest? b. $11.59
Which method of calculating finance charge results in the lowest finance charge? d. adjusted balance
Calvin’s credit card computes finance charges using the daily balance method. His card has a billing cycle of 30 days and an APR of 14.75%. The following table details Calvin’s transactions in the month of September.What will Calvin’s starting balance be next month? c. $625.91
Andrew is on a 30-day billing cycle. His credit card has an APR of 16.60% and computes finance charges using the previous balance method. The table below shows transactions that Andrew made in March. Based on the information in the table, what will Andrew’s March finance charge be? d. $24.82
Yvonne’s credit card has an APR of 17.79% and a 30-day billing cycle. The following table details her credit card transactions in the month of June.Between the previous balance method and the daily balance method, which method of calculating Yvonne’s June finance charge will result in a greater finance charge, and how much greater will it be? d. The previous balance method will have a finance charge $0.40 greater than the daily balance method.
Roger has a credit card with an APR of 19.40% and a billing cycle of 30 days. The following table shows his transactions with that credit card in the month of June.If Roger’s finance charge for June is $3.56, which method of calculating the finance charge does Roger’s credit card company use? a. daily balance method
Maya’s credit card has an APR of 11.84% and a billing cycle of 30 days. The table below shows her transactions with that credit card in the month of September.Find Maya’s finance charge for September using the previous balance method, the adjusted balance method, and the daily balance method. Among those three possible finance charges, what is the value of the one which is neither lowest nor highest? c. $3.68
Jason’s credit card has an APR of 17.02% and a 30-day billing cycle. The following table details Jason’s transactions with that card in the month of June.Between the adjusted balance method and the daily balance method, which method of computing Jason’s June finance charge will result in a greater finance charge, and how much greater will it be? a. The daily balance method will have a finance charge $1.02 greater than the adjusted balance method.
Michael has a credit card with an APR of 15.33%. It computes finance charges using the daily balance method and a 30-day billing cycle. On April 1st, Michael had a balance of $822.05. Sometime in April, he made a purchase of $77.19. This was the only purchase he made on this card in April, and he made no payments. If Michael’s finance charge for April was $10.71, on which day did he make the purchase? d. April 20th
Antonio’s credit card has an APR of 16.65%, and it calculates his finance charge by using the daily balance method and a 30-day billing cycle. On June 1st, Antonio had a balance of $811.67. During the month of June, he made a payment of $110.16 and a purchase of $84.04. How much greater will his June finance charge be if the purchase occurred on June 5th and the payment occurred on June 23rd than it would be if the payment occurred on June 5th and the purchase occurred on June 23rd? b. $1.59
Elizabeth’s credit card computes her finance charges using the previous balance method and a 30-day billing cycle. The table below shows Elizabeth’s credit card transactions in July.If Elizabeth has an APR of 14.61%, how much will her July finance charge be? c. $11.80
Hannah has a credit card with an APR of 11.90% and a billing cycle of 30 days. The following table shows Hannah’s transactions in the month of April. If Hannah’s credit card company calculates finance charges using the daily balance method, what will her April finance charge be? c. $3.30
Christopher has a credit card with an APR of 13.13%. The card uses the adjusted balance method to calculate finance charges. The following table details Christopher’s transactions with his credit card in the month of December.If Christopher is on a 30-day billing cycle, what will his new beginning balance be after December? d. $513.74
David has a credit card with an APR of 13.59% and a 30-day billing cycle. The table below details David’s transactions with that credit card in the month of November.Between the previous balance method and the daily balance method, which method of calculating David’s November finance charge will result in a greater finance charge, and how much greater will it be? c. The previous balance method will have a finance charge $0.96 greater than the daily balance method.
Jennifer has a credit card with an APR of 10.22% and a billing cycle of 30 days. The following table shows Jennifer’s credit card transactions in the month of January.How much greater will Jennifer’s January finance charge be if the finance charge is calculated using the previous balance method than if it is calculated using the adjusted balance method? c. $0.67
Freida’s credit card has an APR of 13.73%, and it calculates her finance charge by using the daily balance method and a 30-day billing cycle. On September 1st, Freida had a balance of $449.22. During the month of September, she made a payment of $85.33 and a purchase of $60.99. How much greater will her September finance charge be if the purchase occurred on September 7th and the payment occurred on September 20th than it would be if the payment occurred on September 7th and the purchase occurred on September 20th? c. $0.72
Ruth’s credit card has an APR of 10.91%, and it computes finance charges using the previous balance method on a 30-day billing cycle. During the April billing cycle, she made a $45.17 payment on April 10th and a $88.34 purchase on April 17th. Her total at the start of May was $847.64. What was her balance at the beginning of April? b. $797.22

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